On Tuesday, 27 November, CEERISK Consulting in collaboration with Clyde & Co, London hosted a workshop on “Renewable energy in the MENA region”. Six panellists across a number of roles, including loss adjuster, insurer, broker, claims consultant, forensic expert and solicitor from CEERISK, Clyde & Co, Lloyd Warwick International, IGI, JLT Group, and Indecs, presented a case study about the loss of a critical piece of equipment at a solar PV plant in Egypt, discussing the challenges facing different stakeholders trying to manage the claim.
After the particulars of the claim were presented by the loss adjuster, Matthew Yau, Mamoon Alyah briefly presented the steps that need to be undertaken by forensic engineers to determine the cause and assess the damage. The panel then started discussing challenges faced during the life of the claim. Citing access restrictions, availability of resources and managing interaction with local authorities, Mamoon Alyah explained difficulties faced during the forensic investigation of the loss. In addition to the technical expertise that Mamoon and other experts bring to losses, Mamoon also emphasised the need for local knowledge and cultural understanding, including the benefits of having someone who speaks the language. This point was reiterated by other panellists in connection to the complications that arise when insurance policies are translated from English to Arabic and certain nuances are lost.
Kit Hollins, Claims Consultant with Indecs emphasised clear and early communication with the insured and their investors in to avoid complications at later stages of the claim handling process. This sentiment was shared by the rest of the panel, including James Green, Underwriter with IGI who went a step further in explaining that communication with the insured should actually start at the inception of the policy rather than after the loss. Insurers, brokers and even appointed loss adjusters should communicate with the insured before a loss is reported and set the right expectations with regard to the handling of claims.
Murray Hays of JLT explained the rational behind the use of LEG 2 or LEG 3 for policies covering renewable energy projects in the MENA region. His explanation was followed with spirited discussion among panellists of the importance of understanding the wording and applying the right policy to the right project.
The importance of local connections and an understanding of the best way to work in conjunction with the Civil Defence was also emphasised. Local authority are usually assumed to be the best informed about the loss, but as someone who has worked in the MENA region over the past decades, Mamoon confirmed that this was not always true: rather than looking into the cause of a loss, their priority is generally to confirm whether a loss is accidental or criminal.
The other significant discussion emphasised the importance of early interactions with the loss—both the importance of open discussion with the stakeholders from early on to eliminate misplaced expectations about how a claim will be handled, as well as to brief the experts about the loss. Meeting with an expert early can insure that the final, full report would provide answers relevant to the questions insurance personnel are putting forth about the claim.
The question of serial losses in renewable energy plants was also the subject of the discussion among the panel. Experiences shared by the speakers showed serious concern about the difficulties experienced by claim handlers when defects are found in undamaged components of power plants.
Alfred Thornton of Clyde & Co explained the issues related to subrogation of claims, especially within the legal environment in the MENA Region. He explained the difficulties in translating English wording of the policy to Arabic and vice versa. He also discussed the challenges of managing interactions with courts in the region and dealing with local insurers who, by law should be represented in the process.
The workshop was ably moderated by Paul Lowrie of Clyde & Co who explored issues from all different perspectives. The delegates included solicitors, experts, loss adjusters, underwriters and claims professionals from leading London market companies. Following conclusion of the workshop, Clyde & Co hosted a reception for the delegates and the panellists providing additional opportunity to exchange thoughts and questions about the topic.
